Monday, February 14, 2011

Option Flow Recap for Febuary 14, 2011

Macro / Thematic

SLV - 15,000 January'13 26 puts were sold at $3.37 and 30,000 March 27 puts were bought for 21 cents. This 1x2 put ratio spread traded at $2.95, and looks opening. This is likely a bet that silver will come under pressure over the next few weeks, but SLV will not settle below $26 at the January 2013 expiration.

Consumer

EXPE - A three-legged spread was initiated when an investor sold 4,000 July 17 puts at $0.50 and bought the July 22 / 27 1x2 call ratio spread at $1.15, 2000x . Separately, an investor sold the July / January 25 call spread at $0.25, 1900x, which might be rolling or closing activity. Thirdly, 2000 January 25 calls traded at $1.50 along with 4000 January 15 puts at $0.625, which might be a ratio risk reversal or strangle.

DTV – 14,000 September 55 calls were bought for $0.27.

WTW – 4300 February 45 calls were bought for $0.95 to open.

WMT – An investor bought the February / March 55 call spread for $0.62 to open.

Energy

NOV – 4600 May 85 / 95 call spreads were bought for $2.30.

SU – 2200 September 37 puts were bought for $2.21

CNQ – 1700 September 44 puts were bought for $4.50.

PPL – 8300 April 25 puts were bought for $1.00

Financials

BX – A large bullish trade in which an investor bought 31,000 of the January 20 calls for $1.60 to open.

CBG – 7900 of the March 25 calls appeared to be sold at $0.60. The calls were sold to open

C - seller of 10k March 5 straddles

Industrials / Materials

MAS – Bearish trade in Masco where 3000 February 14 puts were bought for $0.53 to open.

DE – 5000 of the February / March 100 call spreads were bought for $1.025, 5000x.

ITT - The July 55 / 60 risk-reversal trades at $1.50, 7000x. It looks like a bullish r/r tied to 500k shares at $59.80, which might be the unwinding of a collar trade.

Tech

RVBD – It appears that an investor rolled an overwrite in RVBD higher, buying to close 14,000 of the June 39 calls and selling to open the June 45 calls.

QCOM - 2000 March 62.5 Calls were bought for $0.43, to open.

RIMM – 20,000 January’12 80 calls were sold to open at $4.275.

INTC – Bullish trade in which an investor bought 6000 of the October 25 calls for $0.42.

VIA.B - 20,000 March 47 Calls were sold at $0.25

TWX – 15,000 March 38 Calls were sold at $0.27

TWC – 12,500 March 75 Calls were sold at $0.25

Healthcare

PFE – 14,500 September 20 call were bought for $0.69.

*Special thanks to Flotilla Partners, Option Radar, BMO Capital, LiveVolPro, CBOE, Option Monster, Bloomberg, Shaefers, and all of the options desks and traders we work with to provide the option flow!

Followers

This is trade analysis, not a recommendation.

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